PHOENIX CITY AUDITOR ISSUE STATEMENTS

 

City of Phoenix

City Auditor Department

Privilege and Use Tax

Issue Statements

 

 

                                                                 Issue                       0.00

                                                                                                                                     Ruling

   Issue                                                                                                                          Number

   Not issued.  Ruling number skipped.                                                                              1155

   Not issued.  Ruling number skipped.                                                                              1156

   Not issued.  Ruling number skipped.                                                                              1157

   Not issued.  Ruling number skipped.                                                                              1158

   Not issued.  Ruling number skipped.                                                                              1159

   No issue.  Assessment withdrawn.                                                                                1203

   No issues.                                                                                                                   1223

 

                                                                 Issue                       1.00

 

   Upheld as authority to tax was in the code during                                                           0091

   Income from national advertising taxable by the                                                              0130

   City during period of audit and continually up to

   December 1, 1978.

   Income from national advertising was not taxable                                                            0130

   as of December 1, 1978 per Phoenix City

   Ordinance G-1897.

   Taxpayer's advertising revenues were found                                                                    0246

   Advertising over a public address system is                                                                    0443

   taxable, broadcasting personal messages over a

   public address system is a service and is

   Income received for maintenance and processing                                                            0745

    of real estate broker listings not taxable as

   advertising income since listings distributed to

   Gross income from mass mailing of printed                                                                    0902

   material taxable as advertising income.

 

                                                                 Issue                       1.50

 

   Charges between related corporations taxable                                                                0108

   transactions under Phoenix City Code Section

   14-2(a)(12).

   Taxpayer submitted no evidence of alleged                                                                     0622

   relationship between entities, and neither does

   Code exempt rental receipts between such

   Sale between related parties taxable even                                                                      0928

   though Taxpayer not released from

   indebtedness.

   Inter-company charge to an affiliate for a shared                                                              1213

   Sale of property by a corporation to its affiliate is                                                            1214

 

                                                                 Issue                       2.00

 

   Where no express agency relationship and                                                                    0449

   taxpayer has legal title to goods before

   purchaser takes delivery - no implied agency is

   City collection officers did not have authority,                                                                  0518

   actual or apparent to agree not to assess

   additional penalties properly assessed under the

   Taxpayer did not act as agent for horse owners                                                              0519

   because payment of winning purses is a

   business obligation of Taxpayer.

   Premiums collected by Taxpayer acting as                                                                    0533

   purchasing agent from customers for inclusion of

    coverage on Taxpayer's group policy are not

   Usually, principal not liable for agent's acts if                                                                  0803

   outside of scope of authority or if independent

   contractor.

   Taxpayer did not act as agent for horse owners                                                              0878

   because payment of purses is statutorily

   provided with no evidence of agency

 

                                                                 Issue                       3.00

 

   Based on state statute taxpayer directed to pay                                                             0405

   percentage of income to third party. City code

   not provide for deduction.

   Audio tapes used to generate amusement                                                                      0470

   Purse supplements and amount retained by                                                                   0519

   Sale of ticket to bettor is the taxable event fixing                                                             0519

   point in time amusement income is realized for

   tax purposes.

   Hot air balloons subject to the Federal Air                                                                      0894

   Transportation Excise Tax are exempt from City

   amusement tax.

 

                                                                 Issue                       4.00

 

   Sales of repossessed automobiles to nondealers                                                            0199

    at public auction constituted taxable sales under

    14-2(a)(8).

 

                                                                 Issue                       4.20

 

   Rents collected by bankrupt estate is gross                                                                   0901

   income of Taxpayer, whether or not actually

   received by Taxpayer.

 

                                                                 Issue                       4.50

 

   Commissions received by Brokers are not                                                                      0533

   taxable pursuant to Code Sec 14-12(f).

   Sales commission checks are not taxable gross                                                            0582

   An auctioneer is a broker for the seller, taxable                                                               0755

   to the extent that the principal is taxable.

   A property manager is subject to taxes for the                                                                0939

   rental of real property even if it would be casual if

    rented by owner.

   Property Mgr. is subject to tax upon the rental of                                                            0947

   real property even though such rental would be

   deemed "casual" if principal acted in his own

   Taxpayer is agent of a financial institution in the                                                             0950

   business of leasing and not liable for taxes

   relating to brokered auto leases.

                                                                 Issue                       5.00

 

   Allowing builders to report income at time of                                                                   0134

   transfer of title discriminates against commercial

   builders who report taxes on cash receipts basis.

   As normal bankruptcy procedures require the                                                                 0467

   business to go to cash basis accounting

   taxpayer's deduction was allowed.

   Gross income for cash basis reporting includes                                                              1248

                                                                 Issue                       6.00

 

   City properly taxed taxpayers gross circulation                                                               0130

   revenue measured by using retail sales price of

   the newspapers.

 

                                                                 Issue                       7.00

 

   Taxpayer found to be in taxable activity,                                                                         0176

   proceeds derived from coin-operated car wash

   machines subject to tax.

   Taxpayer who controls game room operations is                                                             0916

   considered lessee of game equipment, not

   licensor of real property.

                                                                 Issue                       8.00

 

   Sales of computer hardware were found not                                                                    0209

   exempt under Section 14-40(1)because taxpayer

    did not manufacture computer hardware.

 

                                                                 Issue                       9.00

 

   Software found to be intangible personal                                                                         0209

   property according to current court cases

   therefore not taxable under 14-2(a)(8) or

   Software subscription manuals.                                                                                     0338

   Licensed software delivered with software                                                                       0908

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

   Licensed software delivered with software                                                                       0909

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

   Licensed software delivered with software                                                                       0910

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

   Licensed software delivered with software                                                                       0911

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

   Licensed software delivered with software                                                                       0912

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

   Licensed software delivered with software                                                                       0913

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

   Licensed software delivered with software                                                                       0914

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

   Software acquired for the purpose of developing                                                              0984

   new applications software programs subject to

   tax.

                                                                 Issue                      10.00

 

   Rental income from computer time rentals                                                                      0209

   properly taxed under Section 14-2(a)(11),does

   not constitute a casual activity.

 

                                                                 Issue                      11.00

 

   Income from real property is renting or licensing-                                                             0405

   agreement determines whether lease or license-

   selling from non-fixed locations not rental.

                                                                 Issue                      12.00

 

   Where Taxpayer spends less than 15% of sales                                                             0111

   price to upgrade real property, he is held not to

   be acting as developer performing construction

   Gross receipts from the contracting business                                                                 0112

   ordinarily mean the gross amount of cash

   received.

   Taxable receipts of contractors on cash receipts                                                             0112

   basis is cash collected on obligations underlying

   sales transaction, includes principal and interest.

   Permanent is a valid, consistent criteria used to                                                             0138

   determine contracting versus a material supplier

   activity.

   Contracting activity was performed in the                                                                        0148

   Developers were not engaged in contracting                                                                   0169

   Taxpayer and the City agreed that installation                                                                 0240

   activity is not retail activity, but contracting

   activity.

   Taxpayer should report income from building the                                                             0252

   Repairs to the improvements or structures would                                                            0257

   Altering, adding to, or improving any building.                                                                 0361

 

                                                                 Issue                      12.00

 

   Exempt sales to hospital versus part of                                                                          0375

   Exempt sale to the city, schools with city.                                                                     0379

   Lump sum settlement for changes to original                                                                  0387

   construction agreement is contracting income.

   Attached awnings porches, etc. to mobile homes                                                           0398

   Where the Taxpayer has a fixed fee arrangement                                                            0439

    and contracts with subcontractors the Taxpayer

   is the prime contractor.

   Taxpayer failed to show that construction                                                                       0492

   receipts from tenant improvements "flowed

   through its books" and that contractors paid tax

   Furnishing and installing custom window                                                                        0547

   Laying cable adds to a project or development                                                                0549

   and therefore falls within contracting activity.

   Taxpayer didn't claim exemption to which it wasn't                                                          0574

    entitled, pursuant to Sec 14-17(c), subjecting it

   to tax liability of subcontractors on contract.

   Boring holes for cable TV is contracting where                                                                0587

   Taxpayer installs materials in them.

 

                                                                 Issue                      12.00

 

   Partner's contracting activity not attributed to                                                                  0602

   Gross proceeds from land not included in                                                                       0605

   contractor's taxable receipts because the Code

   contains no provision taxing them.

   Design and architectural work does not fit the                                                                 0617

   definition of construction contracting.

   One percent tax rate applies to construction                                                                   0647

   Revenue from sale of property, shown partly to                                                               0671

   be for service and non-contracting agreements,

   not taxable to owner-builder.

   Complete replacement of faucets and other                                                                    0676

   assemblies taxable as contracting, not retail

   sales plus exempt service labor.

   Installation of parts such as o-ring, toilet flappers,                                                           0676

    faucet stems, etc. qualify as consumable goods.

   Locating a broken sewer line, where no materials                                                            0676

    are transferred, is an exempt service.

   Leaseholds and personal property are not                                                                      0684

   includable in sale proceeds subject to

   contracting tax.

   The Taxpayer's sale and installation of load                                                                    0693

   controllers falls within the definition of

   contracting.

 

                                                                 Issue                      12.00

 

   Code neither prohibits the deduction of land                                                                    0714

   costs nor requires that proceeds from its sale be

   in gross receipts.

   Code neither prohibits the deduction of land                                                                    0715

   costs nor requires that proceeds from its sale be

   in gross receipts.

   Taxpayer should not receive a tax credit for taxes                                                           0723

    paid on the rental of truss equipment because

   truss equipment not incorporated into building.

   Evidence does not support taxpayer's position                                                                0729

   that it was a subcontractor not liable for privilege

   tax.

   Issue of which partner is liable for contracting tax                                                            0754

   is irrelevant in determining extent of actual

   liability.

   Certain income of taxpayer was for                                                                                0802

   pre-construction expenses and was not taxable

   as contracting.

   Owner of real property improved by others not                                                                 0804

   taxable on sale of such property as owner

   builder.

   Taxpayer's evidence did not establish that it                                                                   0808

   hired a contractor and wasn't an owner builder.

   Taxpayer could not establish that it hired a                                                                     0817

   contractor for construction work and was held

   liable as a prime contractor.

   Code speculative builder provisions encompass                                                              0821

   sale portion of a sale-leaseback transaction.

 

                                                                 Issue                      12.00

 

   Code speculative builder provisions encompass                                                              0824

   sale portion of a sale-leaseback transaction.

   "By or through others" language of 14-100                                                                      0832

   [Owner-Builder] does not require an agency

   relationship.

   A taxpayer becomes an owner-builder by                                                                       0832

   constructing, or having constructed,

   improvements to real property. Signing a

   Code Sec. 14-100 [Owner-Builder] legislatively                                                               0832

   Intent to make profit or gain irrelevant to                                                                         0832

   speculative builder status. Tax liability results

   when speculative builder definition is met.

   Contracting vs. retail activity explained.                                                                          0856

   Taxpayer did not show that some activities                                                                     0856

   should have been classified under retail,

   therefore, were included as contracting.

   Taxpayer not entitled to 35% deduction for                                                                     0864

   contracting labor since Taxpayer assessed use

   tax instead of privilege tax and not in the

   Income from maintenance contract which                                                                       1092

   includes major repairs for elevators is taxable

   income from a construction activity.

   Allocation of revenue from maintenance                                                                          1092

   contracts based on cost to determine taxable

   and non-taxable portion allowed.

 

                                                                 Issue                      12.00

 

   Taxpayer required to report 100% of                                                                               1145

   construction draws when received even though

   Taxpayer is required to post 10% security lieu of

   Hauling of contaminated soil is earth moving                                                                   1173

   subject to construction contracting tax.

   Installation of hardwired alarm systems                                                                          1375

 

                                                                 Issue                      13.00

 

   Found that partnership can be general                                                                           0197

   contractor performing contracting activity for

   which tax assessed.

   Where Taxpayer is selling and installing vinyl                                                                 0547

   floor covering, Taxpayer is a contractor and is

   entitled to the 35% in lieu of labor deduction per

   Sec 14-2(a2Bi).

   Evidence failed to show separation between                                                                   0650

   contractor and owners, who were taxed as

   contractors on proceeds from sale of project.

   Evidence does not support taxpayer's position                                                                0729

   that it was a subcontractor not liable for privilege

   tax.

   Issue of which partner is liable for contracting tax                                                            0754

   is irrelevant in determining extent of actual

   liability.

   Taxpayer could not establish that it hired a                                                                     0817

   contractor for construction work and was held

   liable as a prime contractor.

   Providing a crane and operator for hire is not a                                                                0869

   contracting activity but is a rental of tangible

   personal property.

   No exemption from contracting tax for work                                                                    0898

   Activity as construction manager subject to sales                                                           0986

   Taxpayer was acting as a construction contractor                                                           1136

    rather than a construction manager.  Therefore,

   Taxpayer's income is subject to the tax.

 

                                                                 Issue                      13.10

 

   Consignment agreements are not subject to                                                                   0464

 

                                                                 Issue                      14.00

 

   Not includable in gross receipts from contracting.                                                           0112

    Taxpayer properly elected cash receipts method

    of reporting taxes on contracting income.

 

                                                                 Issue                      15.00

 

   Contractor vs. retailer.                                                                                                  0032

   Taxpayer's income derived from consulting                                                                     0209

   services and maintenance was exempt under

   Sections 14-40(d) and 14-42.

 

                                                                 Issue                      16.00

 

   Contributions in aid of construction.                                                                               0273

   City Tax Code does not exempt capital                                                                          1340

   contribution in aid of construction (CIAC).

 

                                                                 Issue                      17.00

 

   Monies received by Taxpayer from customers for                                                            0206

    license fees reimburse Taxpayer for business

   costs and thereby constitute taxable gross

 

                                                                 Issue                      18.00

 

   Customer reimbursement for lost uniforms do not                                                            0229

    constitute sales transactions and do not

   constitute taxable receipts.

 

                                                                 Issue                      19.00

 

   Taxpayer engaged in taxable activity within City                                                              0113

   despite not receiving monthly returns from City

   and belief his license was cancelled.

   Because Taxpayer representatives' business                                                                  0189

   location in City and Phoenix phone number,

   Taxpayer found to have business activities in

   Taxpayer does business in City constituting                                                                   0191

   sufficient nexus to impose tax, though services

   on sales are made out-of-City.

   The taxpayer was found to be doing business in                                                             0201

   Privilege Tax levied on Taxpayer because of                                                                   0209

   business activities within City measured by gross

   sales whether derived from within City or without.

   Basis of tax is not location of sales, but                                                                         0209

   taxpayer's business activities within the City.

   Taxpayer was found to have sufficient business                                                              0210

   activity within the City constituting sufficient

   nexus.

   Taxpayer is in the equipment rental business and                                                           0248

   "Gain, benefit or advantage" in Code's definition                                                              0513

   of "business" does not require that property

   produce income in excess of expenses.

   Taxpayer, not the subcontracted manager, is in                                                              0613

   the restaurant business and is responsible for

   tax.

 

                                                                 Issue                      19.00

 

   Leasing company is doing business in city even if                                                           0661

    its sole purpose is as a financing vehicle with all

   revenue passed on to a related company.

   Must obtain privilege license if doing business in                                                             0671

   city. Still subject to tax if doing business in city

   without license.

   Taxpayer required to obtain license when                                                                       0694

   Taxpayer's business of reselling long distance                                                                0838

   time was not taxable as a business of

   transmitting long distance calls.

 

                                                                 Issue                      20.00

 

   Taxpayer found to be in computer equipment                                                                  0210

   rental business because of a lease interest and

   ownership interest in the equipment.

   Providing a crane and operator for hire is not a                                                                0869

   contracting activity but is a rental of tangible

   personal property.

   Taxpayer who controls game room operations is                                                             0916

   considered lessee of game equipment, not

   licensor of real property.

   Taxpayer (lessee) not required to pay Use Tax                                                               1213

   on equipment rental.  Lessor who is licensed is

   liable for tax.

 

                                                                 Issue                      21.00

 

   Excess Tax Collected-Franchise fees.                                                                           0273

   State tax.                                                                                                                    0290

   Versus surcharge.                                                                                                        0378

   Assessment of excess tax collected was                                                                       0393

   supported by taxpayer's general ledger records.

   Where amount of tax collected is determinable                                                               0472

   under normal audit procedures City Collector

   may not estimate taxes collected.

   Taxpayer substantiated claim that his records                                                                0477

   gave illusion of excess tax collected.

   Taxpayer showed that claimed excess tax                                                                     0492

   collected was actually misposted utility receipts.

   Documents submitted by Taxpayer did not relate                                                            0530

   to transactions at issue-Taxpayer did not show

   that taxes charged per books and records were

   not in fact collected.

   Revenue, including tax, collected before a "sale"                                                             0568

   has occurred under Sec 14-1 cannot lead to

   excess taxes collected.

   City should collect only their proportionate share                                                            0723

 

                                                                 Issue                      21.00

 

   Excess tax assessment abated since Taxpayer                                                             0864

   reporting on an accrual basis is entitled to

   deductions for bad debts charged off & other

   Excess tax is determined on a transaction basis                                                            0889

   not on a per billing basis. See Reg. 14-250.1.

   Limitation in Code Sec. 14.560(d) applies onto                                                               0889

   portion of tax collected from customers.

   Taxpayer assertion that no excess tax is due is                                                             0923

   unsupported by any documentation.

   Taxes collected from Customers who are also                                                                0974

   club members meet criteria of excess taxes

   collected.

   Taxpayer is liable for excess tax collected unless                                                           0974

   Funds collected in excess of City's privilege tax                                                              0989

   Taxpayer is liable for taxes collected but not                                                                  1102

   No excess tax collected.  Contract amount                                                                    1108

   includes taxes.  Taxpayer received no more than

   amount of contract.

   Assessment on tax collected but not remitted not                                                           1197

   upheld.  Tax Collector failed to prove that

   Taxpayer did collect the tax from tenants.

 

                                                                 Issue                      22.00

 

   Unreported forfeited deposits are not contracting                                                             0241

   Refundable security deposits are not taxable                                                                  0766

   gross income until they forfeit to the landlord.

   Refundable security deposits are not taxable                                                                  0767

   gross income until they forfeit to the landlord.

   Refundable security deposits are not taxable                                                                  0769

   gross income until they forfeit to the landlord.

   Refundable security deposits are not taxable                                                                  0770

   gross income until they forfeit to the landlord.

 

                                                                 Issue                      23.00

 

   Putting property into a partnership (forming the                                                               0457

   partnership) is not a taxable transaction.

 

                                                                 Issue                      24.00

 

   Freight charges to the dealer are not deductible                                                              0179

   Freight charges were properly taxable where                                                                  0209

   they represented delivery charges from

   hardware manufacturers to the retailer.

   Separately charged on books and records.                                                                     0362

   Freight charges are exempt if they are for                                                                       0633

   delivery to the retail customer, separated on the

   invoice, and broken out in Taxpayer's books and

 

                                                                 Issue                      24.50

 

   Gross income includes franchise fees and mill                                                                0970

   assessments passed through to customers.

   Franchise fee payments which are timely filed                                                                1116

   qualify for the P.C.C. Section 14-480(d) credit

   offset.

   The due date for franchise fee payments is                                                                     1116

   controlled by the language of the franchise

   agreement.

   The filing date of franchise fee payments is                                                                     1116

 

                                                                 Issue                      25.00

 

   Gratuities are not taxable gross receipts because                                                           0141

    they are for services performed.

   Gratuities taxable since not distributed in total to                                                            0921

 

                                                                 Issue                      26.00

 

   Gross Income. Property taxes.                                                                                      0006

   Printing vs. retail.                                                                                                         0013

   Deduction for property tax payment by tenant.                                                                0019

   Reimbursements, loan payoffs.                                                                                     0019

   Non-profit.                                                                                                                   0020

   Broker vs. sales income.                                                                                              0021

   Security deposits.                                                                                                        0027

   Payments received for cleaning costs.                                                                           0027

   Payments for property taxes.                                                                                        0028

   Cash discounts, trade-ins, condemnation, rental                                                             0032

 

                                                                 Issue                      26.00

 

   Monthly dues received on behalf of tenant                                                                      0033

   Payments for improvements.                                                                                         0033

   Receipts in lieu of trade-ins not deposit. Sales                                                                0034

   Broker income vs. consignment sales.                                                                           0038

   Insufficient records.                                                                                                      0039

   Contracting vs. equipment rentals.                                                                                 0040

   Payments for taxes and maintenance are                                                                       0041

   constructive gross receipts. Association dues

   and separate meter utility not gross receipts.

   Property provided to employee free of charge is                                                              0041

   Taxation of income from lease of vehicles exempt                                                           0043

   Agent revenue not taxable.                                                                                            0044

 

                                                                 Issue                      26.00

 

   Leasing vs. contracting.  Leasing where                                                                         0058

   customer has control.  Operator not

   determinative.

   Not allowed where payment is for lesser taxes                                                                0065

   Taxpayer broadcasting tower in Guadalupe, not                                                              0068

   Constitutional issues.                                                                                                   0069

   Taxpayer not renting, providing personal                                                                         0073

   Taxpayer receipt of Arizona in lieu property taxes                                                           0074

    are taxable.  Taxes are business expenses of

   Taxpayer.

   General Ledger more suitable record than sales                                                              0075

   Taxpayer cash receipts method of apportioning                                                               0118

   payments by applying a collection percentage to

   total sales and applying tax rate to result held not

    proper.

   The substance of the transfer of two planes was                                                             0253

   a trade down by the taxpayer evidenced by the

   simultaneous transfer of funds.

   Truck rental business paying tax under A.R.S.                                                               0266

 

                                                                 Issue                      26.00

 

   Gross Income v. Conduct for taxes collected.                                                                 0335

   Cancellation changes.                                                                                                  0338

   Credit sales using accrual method.                                                                                0358

   Maintain books and records to reflect.                                                                            0358

   Benefit from purchases made by lessee.                                                                        0365

   Timesharing, service versus equipment rental.                                                                0377

   Income to hotel versus agent for telephone                                                                     0378

   Federal fuel tax on user of fuel. Does not                                                                        0404

   Understated because taxpayer deducting                                                                       0406

   carrying charges on repossessions that not

   included in gross income.

   Gross income to taxpayer versus conduit for third                                                           0409

 

                                                                 Issue                      26.00

 

   Refundable deposits are not taxable receipts.                                                                 0444

   Rent paid to Taxpayer by closely held                                                                            0513

   corporation is taxable gross income to Taxpayer

   since corporate form was recognized for claiming

    rent expense deduction.

   Payments made by tenant which benefit the                                                                   0531

   landlord are included in gross income of the

   landlord.

   Quebedeau and Watkins cases give broad                                                                     0531

   interpretation of gross income including privilege

   tax and luxury tax collected by Taxpayer.

   Where Taxpayer claims that booked revenue is                                                              0557

   not taxable they must substantiate the claim with

   source documents.

   Hand tool was properly excluded from the                                                                      0579

   exemption available for machinery used directly

   in the manufacturing process.

   Taxpayer's transference of assets to its                                                                         0579

   principles in order to satisfy a legal debt

   constitutes a taxable sale between two separate

   Taxpayer's allegation that income was not from                                                              0651

   contracting, & contention City failed to prove

   otherwise, insufficient to overcome presumption

   Under the old and model code, all gross income                                                             0763

   is presumed taxable unless the taxpayer

   establishes otherwise.

   Unrelated out of state sales shipped into Phoenix                                                           0779

    by taxpayer's parent not gross income from

   taxpayer's business activity in Phoenix.

 

                                                                 Issue                      26.00

 

   Taxpayer cannot recharacterize items on books                                                             0825

   and records as revenue to capital contributions

   to avoid tax.

   Taxpayer cannot recharacterize items on books                                                             0826

   and records as revenue to capital contributions

   to avoid tax.

   Taxable gross income includes proceeds applied                                                            0832

    for taxpayer's benefit. Taxpayer receipt

   unnecessary.

   Trade-ins involve a question of scope of gross                                                                 0867

   income under 14-240(a)(3). They are not treated

    as exemptions under 14-15 and 14-350.1.

   Postage charges separately stated on customer                                                             0902

   invoice not gross income to Taxpayer.

   Tax paid to printers on printed materials and                                                                   0902

   imposition of tax upon Taxpayer's charges to

   customers do not constitute double taxation.

   Federal Fuel Excise Tax included in gross                                                                     1001

   Taxpayer's Federal and Income Tax Returns and                                                            1008

    W-2's indicate Taxpayer income only from

   wages and salaries. No other income reported.

   Guaranteed income distribution subsidy not                                                                   1056

   subject to additional 3% transient tax.

   Receipt of guaranteed income distribution                                                                      1056

   subsidy from operator of hotel is gross income

   subject to tax.

 

                                                                 Issue                      26.00

 

   Taxable gross income includes sales to                                                                         1064

   Taxpayer's accrued deferred expenses are not                                                                1271

   Taxpayer's tax and insurance refunds are not                                                                 1271

   Taxpayer's gross income from alarm monitoring                                                              1319

   is subject to tax, even if Taxpayer subcontracts

   the monitoring work to another company.

   Capital contribution in aid of construction (CIAC)                                                             1340

   is gross income taxable under utilities

   classification.

   Convenience charge collected by Ticketmaster is                                                           1358

    part of the sales transaction and is taxable

   income to Taxpayer.

 

                                                                 Issue                      27.00

 

   Rail rebates and refunds not taxable.                                                                             0399

   Cost of tangible personal property acquired by                                                                0431

   acting as purchasing agent for customer not

   included in gross receipts.

   Where City erroneously included returns and                                                                  0521

   trade-in amounts twice in calculation of gross

   receipts, assessment is adjusted to correct error.

   Deposits are taxable when received.                                                                              0582

   All gross receipts are presumed taxable.                                                                        0583

   Under the old and model code, all gross income                                                             0763

   is presumed taxable unless the taxpayer

   establishes otherwise.

   Taxpayer's evidence doesn't carry burden to                                                                   1042

   separate taxable from non-taxable income, so

   gross income is subject to the tax.

   Capital contribution in aid of construction (CIAC)                                                             1340

   is gross income taxable under utilities

   classification.

 

                                                                 Issue                      28.00

 

   Privilege tax not assessable against taxpayer                                                                 0141

   under 14-2(a)(12) because it is not in hotel

   business.

   City Code requires Taxpayer in hotel lodging                                                                  0540

   business to bill separately for food and drinks if

   he wants to treat transaction as a sale.

   Taxpayer subject to transient lodging tax                                                                       0985

   because Customer agreement does not require

   Customer to obtain and pay for a specific

   Guaranteed income distribution subsidy not                                                                   1056

   subject to additional 3% transient tax.

   Receipt of guaranteed income distribution                                                                      1056

   subsidy from operator of hotel is gross income

   subject to tax.

   Once a guest stay exceeds 30 days, Taxpayer is                                                           1376

   subject to the residential rental tax, not the

   transient tax.

   Taxpayer's hotel revenue from Amtrak subject to                                                             1376

   A person needs to obtain and be obligated to                                                                 1376

   pay lodging for more than 30 days to be

   considered non-transient.

 

                                                                 Issue                      28.50

 

   Tax statutes must be clear & unambiguous & if                                                              0712

   not, are strictly construed against taxing

   authority.

   Ambiguous tax statutes must be liberally                                                                       0725

   Tax statutes are construed liberally in favor of                                                                 0838

   the taxpayer and strictly against the City.

   Code Regulations have equal stature to Code                                                                 0869

   Sections. Regulations are not subordinate to

   Code Sections.

   Incorrect interpretation of the law by taxing                                                                     0951

   authority does not operate to estop enforcement

   of the law.

   Even if City employees misinformed Taxpayer                                                                1119

   about tax obligations (not proven in this case)

   requirements of the Code cannot be waived by

   City employee.

 

                                                                 Issue                      29.00

 

   The sale and erection of outside features did not                                                             0257

    constitute an improvement to real property.

 

                                                                 Issue                      30.00

 

   Chandler business taxed on income derived from                                                            0129

    leases consummated in Chandler for mobile

   office units permanently installed in Phoenix.

   The sale and installation of drapes and blinds                                                                 0257

   does not constitute an improvement to real

   property.

   The installation of improvements and structures                                                              0257

   including premanufactured items and other

   materials was included in contracting income.

 

                                                                 Issue                      30.10

 

   Sale of personal accident insurance not subject                                                              1033

 

                                                                 Issue                      31.00

 

   Transfer of structural steel from one subsidiary                                                               0334

   of parent company to taxpayer.  Another

   subsidiary was a sale subject to use tax.

   Interdivisional transfer are not taxable                                                                             0447

 

                                                                 Issue                      32.00

 

   Late charges not consideration received for                                                                    0207

   lease of tangible personal property, hence do

   not constitute taxable gross receipts.

   Late charges and application/fees are not                                                                       0812

   taxable as rental income. Cancellation fees are

   taxable since they are in lieu of rent.

   Late payment interest is receipt derived from                                                                  1293

   lease agreement, therefore, it is included in

   taxable gross income.

 

                                                                 Issue                      33.00

 

   Leasing revenue, as taxpayer did not exercise                                                                0085

   City agreed to waive assessment arising from                                                                 0160

   lease income. Issue raised was whether a

   department store license was a lease.

   Leasing of mobile equipment treated a rental                                                                  0430

   transaction subject to taxation by City in which

   business office of lessee is based.

   Where the leasing of real property is a                                                                           0443

   substantial and reoccurring transaction, it is

   taxable even if this is not the Taxpayer's primary

   Telephone charges separately billed to guests                                                                0558

   for outside calls are not gross income to hotel

   from business of leasing real property per Sec

   Lessor's rental receipts are not gross income                                                                 0571

   derived from a motor carrier's use of public

   highways pursuant to ARS Sec28-1599.05(I).

   Lessor's rental receipts are not gross income                                                                 0572

   derived from a motor carrier's use of public

   highways under ARS 28-1599.05(I).

   The lease of two separate offices does not                                                                     0618

   Lessor's receipts are taxable income even                                                                      0635

   though derived from motor carrier's use of public

   highways under 28-1599.05(I) (overrules CAP

   Lessors receipts are taxable income even though                                                           0685

    derived from motor carriers use of public

   highways under 28-1599.05(I) (overrules CAP

 

                                                                 Issue                      33.00

 

   Lessor's receipts are taxable income even                                                                      0746

   though derived from motor carrier's use of public

   highways under 28-1599.05(I).

   "Tenant in possession" language of 14-2(a)(9)                                                                 0766

   and 14-445(a) exists solely to isolate taxpayer

   among sublessors. It does not concern gross

   Late fees and non-sufficient funds charges are                                                                0766

   taxable gross income from the business of

   renting real property.

   Refundable security deposits are not taxable                                                                  0766

   gross income until they forfeit to the landlord.

   Section 8 low income housing payments                                                                        0766

   constitute taxable gross income to the landlords

   receiving the assistance.

   The value of the manager's apartment, leased to                                                             0766

    the manager rent free, is not imputed rental

   income to the taxpayer.

   Refundable security deposits are not taxable                                                                  0767

   gross income until they forfeit to the landlord.

   Section 8 low income housing payments                                                                        0767

   constitute taxable gross income to the landlords

   receiving the assistance.

   "Tenant in possession" language of 14-2(a)(9)                                                                 0767

   and 14-445(a) exists solely to isolate taxpayer

   among sublessors. It does not concern gross

   The value of the manager's apartment, leased to                                                             0767

    the manager rent free, is not imputed rental

   income to the taxpayer.

 

                                                                 Issue                      33.00

 

   Late fees and non-sufficient funds charges are                                                                0767

   taxable gross income from the business of

   renting real property.

   "Tenant in possession" language of 14-2(a)(9)                                                                 0769

   and 14-445(a) exists solely to isolate taxpayer

   among sublessors. It does not concern gross

   Late fees and non-sufficient funds charges are                                                                0769

   taxable gross income from the business of

   renting real property.

   Refundable security deposits are not taxable                                                                  0769

   gross income until they forfeit to the landlord.

   Section 8 low income housing payments                                                                        0769

   constitute taxable gross income to the landlords

   receiving the assistance.

   The value of the manager's apartment, leased to                                                             0769

    the manager rent free, is not imputed rental

   income to the taxpayer.

   "Tenant in possession" language of 14-2(a)(9)                                                                 0770

   and 14-445(a) exists solely to isolate taxpayer

   among sublessors. It does not concern gross

   Late fees and non-sufficient funds charges are                                                                0770

   taxable gross income from the business of

   renting real property.

   Refundable security deposits are not taxable                                                                  0770

   gross income until they forfeit to the landlord.

   Section 8 low income housing payments                                                                        0770

   constitute taxable gross income to the landlords

   receiving the assistance.

 

                                                                 Issue                      33.00

 

   A family corporation does not qualify for the one                                                             0822

   unit real property rental exemption under Reg.

   14-445.1(b)(6).

   "Tenant in actual possession" language exists                                                               0825

   solely to isolate taxpayer among sublessors. It

   does not concern gross income.

   Taxpayer's contention that leasing tax should be                                                            0830

   apportioned based on mileage or location

   rejected.

   Income from a speculative builder sale is                                                                        0832

   incurred after rental activity has ceased. It does

   not count as income under Code Sec.

   Partnership of first cousins is not from the same                                                             0852

   immediate family under Reg. 14-445.1(b)(6).

   One unit rental not tax exempt under 14-445(g).

   Under Code Sec. 14-2(a)(9), partnership's single                                                             0852

    rental unit more resembled an investment and

   had another source of income. Rental income

   The definitions of storage, use or consumption                                                                0864

   encompass the leasing of tangible personal

   property.

   Taxpayer failed to provide sufficient evidence                                                                  0950

   that Tax Collector's assessment on auto lease

   revenue is erroneous.

   Taxpayer's right to insurance proceeds is per                                                                 0950

   contract with lessee and is considered

   compensation for vehicle or its use.

   Rental Income from lease of apartments subject                                                             1037

   to Privilege Tax. Ignorance of the law does not

   relieve Taxpayer of liability.

 

                                                                 Issue                      33.00

 

   A tenant in common is responsible for the entire                                                             1091

   tax liability resulting from the rental of the

   property.

   Building insurance premiums paid by the tenant                                                             1098

   are gross income to the landlord.

   Taxpayer was not subject to the tax until she had                                                           1124

    three residential rental units available for rent.

   An owner-occupier is not a tenant.                                                                                 1151

   Taxpayer who leases commercial space to a                                                                  1281

   tenant and requires tenant to bear costs of

   taxes, maintenance & insurance can be engaged

    in the leasing business.

   Lessee's payment of maintenance expenses and                                                            1281

    property taxes is Taxpayer gross income and

   consideration for lease.

   Refundable security deposits are not taxable                                                                  1293

   Income from "dollar option" leases not taxable.                                                               1293

 

                                                                 Issue                      34.00

 

   Gross income to taxpayer and no basis for                                                                     0409

   Burden of paying purse is that of Taxpayer                                                                     0519

   although State has set a minimum contribution

   percentage which Taxpayer must follow.

 

                                                                 Issue                      35.00

 

   Licensing Revenue.                                                                                                      0010

   A license is permission to do a particular act                                                                  0560

   upon land of another - it does not give grantee

   exclusive possession and is usually revocable at

   Taxpayer failed to prove that its share of video                                                                0560

   game revenue was payment for services rather

   than licensing income.

   Taxpayer's proceeds from game machine are                                                                 0636

   The taxing of amusement income from one party                                                            0636

   and licensing income from another is not double

   taxation.

   Taxpayer required to obtain license when                                                                       0694

   Because taxpayer didn't establish what portion of                                                           0761

    its business was licensing & what part was

   service, all income is presumed to be taxable

   Use of mail boxes and portions of taxpayer's                                                                  0761

   office at any time constitutes a taxable licensing

   for use of real property.

   Licensed software delivered with software                                                                       0908

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

   Licensed software delivered with software                                                                       0909

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

 

                                                                 Issue                      35.00

 

   Licensed software delivered with software                                                                       0910

   manuals and materials is tangible personal

   property under Code Section 14-2.

   Licensed software delivered with software                                                                       0911

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

   Licensed software delivered with software                                                                       0912

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

   Licensed software delivered with software                                                                       0913

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

   Licensed software delivered with software                                                                       0914

   manuals and materials is tangible personal

   property taxable under Code Section 14-2.

   Taxpayer's activity constitutes licensing real                                                                   1143

   property for use by craft vendors, and is subject

   to the tax.

   License-for-use revenue from concessionaires is                                                             1358

 

                                                                 Issue                      36.00

 

   Nontaxable service versus sale of parts with                                                                   0302

   related labor- Tangible personal property

   transferred inconsequential.

   Code ambiguous as to taxability and must be                                                                 0312

   Prior to and after ordinance G-2229-                                                                               0338

   Amount taxable.                                                                                                          0345

   Property less than 15% of the total charge.                                                                    0362

   Prior to 6/30/81, maintenance income exempt                                                                0442

   Ordinance 62229 made this taxable where

   purchasers entitled to goods and services

   Allocation of revenue from maintenance                                                                          1092

   contracts based on cost to determine taxable

   and non-taxable portion allowed.

   Income from maintenance contract which                                                                       1092

   includes major repairs for elevators is taxable

   income from a construction activity.

 

                                                                 Issue                      37.00

 

   Make-ready charges nondeductible and not                                                                    0179

   exempt services because provided by Taxpayer

   prior to transfer of property to customer.

 

                                                                 Issue                      38.00

 

   Taxable game versus nontaxable services.                                                                     0288

   Nontaxable membership fees versus game or                                                                 0290

   Taxable game versus nontaxable service.                                                                       0290

   Membership fee income of Taxpayer is taxable                                                               0486

   pursuant to Sec 14.2(a)(10) only to extent of

   percentage of retail sales.

   Membership fees not taxable as advertising                                                                    0544

   income where discount club receives direct

   payment from businesses and provides referral

   service to members

   Membership fees for discount club do not                                                                       0545

   constitute indirect or advance payment on goods

    sold by Taxpayer so are not taxable as retail

   Full amount of golf initiation and membership                                                                  1229

   fees held taxable even though member is entitled

    to all other club facility privileges.

   A portion of the membership fee related to                                                                      1278

   taxable activities is subject to the Privilege Tax.

 

                                                                 Issue                      39.00

 

   Local calls, long distance calls, rebate from                                                                   0290

   Nontaxable service versus miscellaneous income                                                           0290

   Warning tags to be tied onto machinery - Part of                                                             0294

 

                                                                 Issue                      40.00

 

   Taxpayer is not taxable on income designated as                                                           0198

   Sales of newspapers at front desk not subject to                                                            0198

   privilege tax; Taxpayer did not own property

   being sold, amounts collected were remitted to

   Taxpayer did not own property being sold,                                                                      0198

   amounts collected were remitted to newspaper.

   Sale of tangible personal property versus                                                                        0290

   Rentals of aircraft in connection with flight                                                                      0327

   training lessons - Service v. rental of tangible

   personal property.

 

                                                                 Issue                      41.00

 

   Income derived from charges associated with                                                                 0123

   funeral services nontaxable income derived from

   services not leasing.

   Income attributable to transportation for mortuary                                                            0216

    was not taxable because transportation is

   necessary and incidental.

 

                                                                 Issue                      41.50

 

   Taxpayer not entitled to offset since taxes were                                                              0755

 

                                                                 Issue                      42.00

 

   Commercial rental income received from rental of                                                            0171

    one commercial property not taxable prior to

   December 6, 1976.

   Taxpayer engaged in taxable activity rather than                                                             0172

   a casual activity in having one lease per one

   commercial property.

   Failure to file based on bona fide belief, penalty                                                              0225

   not justified. Justified after Taxpayer purchased

   another Comm. Prop. and failed to pay Tax.

   Casual activity, Pre and Post December 1976.                                                               0285

   Rental income from one commercial property is                                                              0513

   taxable between Dec 7, 1976 and March 15,

   1983.

   Renting more than one unit of commercial                                                                      0662

   Leasing unit of commercial real property taxable                                                             0687

   even if only an investment and partners do not

   make money. Doing business doesn't require

   Taxpayer responsible for payment of Privilege                                                                 1197

   Tax even if he has only one commercial rental

   property.

   Taxpayer did not meet the single unit                                                                             1277

   Taxpayer, a partnership, was not subject to the                                                              1287

 

                                                                 Issue                      42.00

 

   Taxpayer's corporation and sole proprietorship                                                                1328

 

                                                                 Issue                      42.50

 

   Taxpayer's who were not contractors cannot be                                                              0538

   taxed under the owner-builder provisions of the

   Code.

   Taxpayer was an owner-builder when it improved                                                             0574

    Azteca Plaza, but not a "prime contractor" since

   it didn't sell property within two years.

   Partnership not an owner-builder because it was                                                             0602

   not a contractor, even though partner did the

   contracting.

   Owner of real property improved by others who                                                               0614

   did all contracting work was not taxable on sale

   of property within two years of completion.

   Taxpayer not an owner builder because it                                                                       0615

   received no contracting receipts on sale of

   project constructed by another.

   Limited partnership joint venturer that built on                                                                 0651

   joint venture's land was not an owner-builder

   because it built on another's land.

   Revenue from sale of property, shown partly to                                                               0671

   be for service and non-contracting agreements,

   not taxable to owner-builder.

   Owner of property who performed no contracting                                                             0671

   activity & received no income not an owner

   builder & not liable for use tax.

   Taxpayer who performed no contracting activity                                                              0696

   or received no contracting compensation is not

   an owner-builder.

   Owner of improved property which does engage                                                              0697

   in contracting activity or receive contracting

   compensation is not an owner-builder.

 

                                                                 Issue                      42.50

 

   Owner of real property improved by others are                                                                 0701

   not taxable on sale of such property as owner

   builder.

   Owner of real property improved by others are                                                                 0702

   not taxable on sale of such property as owner

   builder.

   Owner of real property improved by others are                                                                 0703

   not taxable on sale of such property as owner

   builder.

   Old code - taxpayer not a contractor, therefore                                                               0713

   General partner of partnership not liable as                                                                     0760

   owner-builder even though it was contractor.

   Partner was an "outsider" following CAP 602.

   General partnership held not liable as                                                                            0766

   owner-builder which hired independent

   contractor to construct building.

   City's recommendation that owner-builder                                                                       0776

   assessment be abated is adopted by hearing

   officer.

   Owner of real property improved by others not                                                                 0804

   taxable on sale of such property as owner

   builder.

   Taxpayer's evidence did not establish that it                                                                   0808

   hired a contractor and wasn't an owner builder.

   Taxpayer could not establish that it hired a                                                                     0817

   contractor for construction work and was held

   liable as a prime contractor.

 

                                                                 Issue                      42.50

 

   A taxpayer becomes an owner-builder by                                                                       0832

   constructing, or having constructed,

   improvements to real property. Signing a

   Code Sec. 14-100 [Owner-Builder] legislatively                                                               0832

   Intent to make profit or gain irrelevant to                                                                         0832

   speculative builder status. Tax liability results

   when speculative builder definition is met.

   "By or through others" language of 14-100                                                                      0832

   [Owner-Builder] does not require an agency

   relationship.

   A taxpayer can be an owner-builder and                                                                         0891

   Application of Code Sec. 14-417 owner builder                                                                0891

   tax is retroactive under case facts.

   Code Sec. 14-100 and 14-416 are not                                                                            0891

   Code speculative builder provisions do not apply                                                             0891

   retroactively. Code only relies on antecedent

   facts.

   Imposition of owner-builder tax is not made in the                                                           0891

    event of a sale. Rather, tax is imposed upon

   construction transactions.

   Under Code Sec. 14-416, the sale of land with                                                                0891

   grading, installation of utilities, paving is

   improved land and subject to speculative builder

 

                                                                 Issue                      42.50

 

   An owner-builder's sale of his personal residence                                                            1164

 

                                                                 Issue                      42.70

 

   Taxpayer, a restaurant, failed to prove that it had                                                            0560

    partnership arrangement with video game

   owner.

   Taxpayer is not a partnership because it has no                                                             1151

   Partner's individual income may be considered                                                               1237

   for casual commercial lease purposes.

 

                                                                 Issue                      43.00

 

   Repair items nor equipment used in plant to                                                                   0229

   clean uniforms exempt under 14-50(a)(9)

   because such operations not Taxpayer primary

 

                                                                 Issue                      44.00

 

   Prime contractor versus consulting agent.                                                                      0289

   Owner builder.                                                                                                             0379

   Taxpayer's use of subcontractor form did not                                                                  0631

   change its status as a prime where it failed to

   show a prime was in control of the project.

 

                                                                 Issue                      45.00

 

   It was found that taxpayer has not met its burden                                                           0256

   of proving that sales to some job printers were

   sales for resale.

   Sales definition.                                                                                                           0294

   Applying printed letters to drawings through                                                                    0515

   typesetting process is taxable typesetting activity

   under Sec 14-2 (a)(4).

   Mounting designs on foam cork or wall for                                                                      0515

   presentation to clients not taxable activity under

   Sec 14-2(a)(4).

   Testimony at hearing supported finding that                                                                    0515

   camera work was not part of printing process and

    therefore not taxable under 14-2(a)(4).

   Use tax held not to apply to printing plates of                                                                 0554

   taxpayer lithographer who "sold" plates to client

   with printing job.

   Printing of free publications and shoppers is not                                                              0570

   an exempt sale to manufacturers within Code

   Sec 14-40(f).

   Gross receipts from composition services                                                                      0604

   included in taxable typesetting income.

   Job printing sold to nonprofit hospitals exempt                                                                0648

   "Microfilming" not taxable under pre model code                                                             0725

   taxing "job printing, typesetting, engraving,

   embossing & copying".

 

                                                                 Issue                      45.00

 

   Gross income from mass mailing of printed                                                                    0902

   material taxable as advertising income.

   Revenue from advertisements solicited by                                                                      0988

   Taxpayer not considered payment for transfer of

   title or possession of Guides to Bureau.

   For Code Section 14-425(b)(1) to be applicable,                                                              0988

   Taxpayer who purchased the job printing has to

   resell Guides, not somebody else.

 

                                                                 Issue                      46.00

 

   Taxpayer argued without success that the City                                                               0441

   should proceed against these clubs to collect the

    tax, the City claimed was due.

 

                                                                 Issue                      47.00

 

   Taxpayer is not taxable on gross receipts earned                                                            0118

    by a separately identifiable and taxable profit

   sharing plan.

   Income from a profit sharing plan is not rental                                                                 0243

 

                                                                 Issue                      48.00

 

   Rental of equipment versus nontaxable service.                                                              0302

 

                                                                 Issue                      49.00

 

   Taxpayer did not purchase materials for resale,                                                              0236

   but to fulfill obligations under construction

   contract.

   Taxpayer was found not to be a purchasing                                                                    0236

 

                                                                 Issue                      50.00

 

   Refinancing a construction project is not in                                                                     0457

   substance a sale,under the owner builder

   provisions of the Code.

 

                                                                 Issue                      51.00

 

   Tenant payment of property tax is gross income.                                                            0096

   Taxpayer sales found exempt under Section                                                                   0173

   14-40(h) though taxpayer rented rather than sold

    commodities, term "sale" includes rentals.

   There are no taxable gross receipts derived from                                                             0198

    the use and occupancy of the manager's

   apartment.

   Taxpayer, a resort mottle, is an entity to which                                                               0198

   Section 14-2(a)(12)(A) can apply if certain other

   conditions are met.

   Assessing rental income for the use of a                                                                        0216

   Real property.                                                                                                              0269

   Business with object of gain or benefit.                                                                          0273

   Operating expenses versus benefits to landlord.                                                              0276

   Repair work/Property taxes/Trash

   collected/Rearranging office area.

   Security deposit- Property taxes paid by tenant-                                                             0301

   Utility charges paid by landlord and collected

   from tenant.

   Taxpayer leased building to separate entity.                                                                   0304

 

                                                                 Issue                      51.00

 

   Electrical utilities and low cost employee benefits.                                                          0332

   Under Code Sec. 14-2(a)(9), partnership's single                                                             0352

    rental unit more resembled an investment and

   had another source of income.  Rental income

   Written lease or rental agreement entered into                                                                0368

   prior to March 22, 1968 on tangible personal

   property.

   Rental of data processing equipment located                                                                  0374

   No limitation period when return not filed- No                                                                  0393

   refund by Hearing Officer.  One commercial

   rental not casual Taxpayer followed state

   requirement and had Bona Fide Belief.

   Where the lessee is paying tax it is inappropriate                                                           0436

   Sale of closed circuit broadcasts was substantial                                                           0443

   enough business activity to make it a part of

   Taxpayer's business, not a casual transaction.

   Where Taxpayer transferred use and control of                                                               0508

   chemical toilets to customers, Taxpayer was

   renting toilets to customers within the meaning of

    Code Sec 14-2(a)(8).

   Payments made by tenant which benefit the                                                                   0531

   landlord are included in gross income of the

   landlord.

   Tenant's payment of insurance premiums for                                                                  0531

   insurance covering landlord's building and

   personal property of tenant is gross income to

 

                                                                 Issue                      51.00

 

   Tenant's payment of property tax inures to                                                                     0531

   benefit of landlord and is therefore gross income

   to landlord.

   Taxpayer receipt of common area charges is not                                                            0586

   taxable as rent if received from party that does

   not rent real property from Taxpayer.

   Income from rental of portable toilets is for both                                                              0660

   rental and service. To the extent proven, portion

   of service income is not taxable.

   Renting more than one unit of commercial                                                                      0662

   Sublessor status does not exempt lessors of real                                                           0662

   property from taxation if renting to the tenant in

   actual possession.

   Tax exempt fuel charges not taxable as rental                                                                0670

   income. Irrelevant that charges are part of

   proceeds from lease agreement.

   Leasing unit of commercial real property taxable                                                             0687

   even if only an investment and partners do not

   make money. Doing business doesn't require

   Refundable security deposits are not taxable                                                                  0766

   gross income until they forfeit to the landlord.

   The value of the manager's apartment, leased to                                                             0766

    the manager rent free, is not imputed rental

   income to the taxpayer.

   Late fees and non-sufficient funds charges are                                                                0766

   taxable gross income from the business of

   renting real property.

 

                                                                 Issue                      51.00

 

   "Tenant in possession" language of 14-2(a)(9)                                                                 0766

   and 14-445(a) exists solely to isolate taxpayer

   among sublessors. It does not concern gross

   Late fees and non-sufficient funds charges are                                                                0767

   taxable gross income from the business of

   renting real property.

   Refundable security deposits are not taxable                                                                  0767

   gross income until they forfeit to the landlord.

   The value of the manager's apartment, leased to                                                             0767

    the manager rent free, is not imputed rental

   income to the taxpayer.

   "Tenant in possession" language of 14-2(a)(9)                                                                 0767

   and 14-445(a) exists solely to isolate taxpayer

   among sublessors. It does not concern gross

   "Tenant in possession" language of 14-2(a)(9)                                                                 0769

   and 14-445(a) exists solely to isolate taxpayer

   among sublessors. It does not concern gross

   Late fees and non-sufficient funds charges are                                                                0769

   taxable gross income from the business of

   renting real property.

   Refundable security deposits are not taxable                                                                  0769

   gross income until they forfeit to the landlord.

   The value of the manager's apartment, leased to                                                             0769

    the manager rent free, is not imputed rental

   income to the taxpayer.

   "Tenant in possession" language of 14-2(a)(9)                                                                 0770

   and 14-445(a) exists solely to isolate taxpayer

   among sublessors. It does not concern gross

 

                                                                 Issue                      51.00

 

   Late fees and non-sufficient funds charges are                                                                0770

   taxable gross income from the business of

   renting real property.

   Refundable security deposits are not taxable                                                                  0770

   gross income until they forfeit to the landlord.

   Rental of an asphalt concrete plant is exempt                                                                 0781

   from privilege tax since the plant is income

   producing capital equipment.

   A family corporation does not qualify for the one                                                             0822

   unit real property rental exemption under Reg.

   14-445.1(b)(6).

   "Tenant in actual possession" language exists                                                               0825

   solely to isolate taxpayer among sublessors. It

   does not concern gross income.

   Taxpayer's contention that leasing tax should be                                                            0830

   apportioned based on mileage or location

   rejected.

   Income from a speculative builder sale is                                                                        0832

   incurred after rental activity has ceased. It does

   not count as income under Code Sec.

   Partnership of first cousins is not from same                                                                  0852

   immediate family under Reg. 14-445.1(b)(6).

   One unit rental not tax exempt under 14-445(g).

   Rents collected by bankrupt estate is gross                                                                   0901

   income of Taxpayer, whether or not actually

   received by Taxpayer.

   Under old City Code, rents received after the first                                                            0901

    ninety days are excluded from gross income

   subject to taxation.

 

                                                                 Issue                      51.00

 

   Renting of equipment to subscribers of financial                                                              0907

   information services considered rental and

   service business.

   Taxpayer who controls game room operations is                                                             0916

   considered lessee of game equipment, not

   licensor of real property.

   Sales of gasoline by rental companies to its                                                                   0933

   customers are retail sales and exempt by Sec.

   14-465(j).

   Sales of optional insurance by vehicle leasing                                                                 0933

   Tax liability of owner on rental income goes back                                                            0948

   to the beginning of the taxable activity.

   Taxpayer's right to insurance proceeds is per                                                                 0950

   contract with lessee and is considered

   compensation for vehicle or its use.

   Taxpayer failed to provide sufficient evidence                                                                  0950

   that Tax Collector's assessment on auto lease

   revenue is erroneous.

   Gross income from optional insurance sales of                                                               0960

   vehicle leasing company is not taxable.

   Gross income from optional insurance sales of                                                               0960

   vehicle leasing company is not taxable.

   Taxpayer has one commercial unit in City and                                                                0997

   one in another state. Taxpayer is not entitled to

   one unit exclusion and is subject to rental tax.

 

                                                                 Issue                      51.00

 

   Income from rental of portable toilets is for both                                                              0999

   rental and service. To the extent proven, portion

   of service income is not taxable.

   Income from rental of portable toilets is for both                                                              1000

   rental and service. To the extent proven, portion

   of service income is not taxable.

   Income from Rental-Purchase Agreements of                                                                 1026

   musical instruments is income from rental of

   tangible personal property.

   Sales of gasoline by rental companies to its                                                                   1027

   customers is retail sales exempt under Sec.

   14-465(j).

   Sales of optional insurance by vehicle leasing                                                                 1027

   Rental Income from lease of apartments subject                                                             1037

   to Privilege Tax. Ignorance of the law does not

   relieve Taxpayer of liability.

   Lack of knowledge does not relieve Taxpayer of                                                              1040

   tax liability on rental income from commercial

   property.

   Rental income from lease transactions with sister                                                           1059

   Building insurance premiums paid by the tenant                                                             1098

   are gross income to the landlord.

   Property taxes paid by Taxpayer not part of                                                                    1123

 

                                                                 Issue                      51.00

 

   Income from hauling dirt not revenue from leases                                                            1141

   Tax cannot be abated based on an allegation                                                                 1204

   that a City employee provided erroneous

   information.

   Ignorance of the law does not relieve Taxpayer                                                                1215

   of Privilege Tax liability on residential rental

   income.

   Taxpayer's lack of knowledge of the tax on rental                                                            1219

    income does not excuse Taxpayer of his liability

   to pay the tax.

   Insurance premiums paid by lessee for the                                                                     1241

   benefit of the lessor is considered taxable rental

   income to lessor.

   Monies paid by lessee to lessor, where reason                                                               1241

   for payment is not documented, is considered

   taxable rental income to lessor.

   Taxpayer did not prove building improvements                                                                 1245

   and property taxes were not gross income.

   Taxpayer who has triplex for rent is subject to the                                                           1249

   Rental income from one commercial property                                                                 1270

   Lessee's payment of maintenance expenses and                                                            1281

    property taxes is Taxpayer gross income and

   consideration for lease.

 

                                                                 Issue                      51.00

 

   Taxpayer who has an eight unit residential                                                                     1285

   property for rent is subject to the City's Privilege

   Tax.

   Income from lease of tractor trailers subject to                                                                1293

   the motor carrier tax exempt from Privilege Tax

   due to 1994 legislation.

   Taxpayer did not provide sufficient                                                                                 1314

   documentation to prove estimated rental income

   is not reasonable and correct.

   Rental income from residential properties subject                                                            1329

   Rental income from residential properties subject                                                            1330

   Taxpayer's rental income subject to the Privilege                                                            1365

   Income is from rental of taxable personal                                                                        1374

   property that is not exempt as income producing

   capital equipment.

   Rental income is taxable under Section 14-445.                                                              1377

   Rental income is taxable under Section 14-445.                                                              1378

   Ignorance of the law does not relieve Taxpayer                                                                1383

   of Privilege Tax liability on residential rental

   income.

 

                                                                 Issue                      52.00

 

   Definition of business: Definition of gain or                                                                      0273

   Price reductions for inferior food or drink are not                                                              0918

   complimentary items subject to use tax.

   Price reductions on restaurant bills through use                                                              0918

   of discount coupons not subject to use tax.

   Price reductions for inferior food or drink are not                                                              0919

   complimentary items subject to use tax.

   Price reductions on restaurant bills through use                                                              0919

   of discount coupons not subject to use tax.

   Management fees and subsidy payments for                                                                  0942

   operation of in-house cafeterias are taxable.

   Income from employee cafeteria not operated by                                                             1177

   outside entity and open only to employees and

   authorized guests not subject to tax.

   Minimum charge for use of Country Club                                                                        1229

   restaurant held taxable as income from

   restaurant activity.

   Monies paid to Taxpayer for management fees,                                                              1288

   overhead reimbursement and cost

   reimbursement are, in reality, income derived

   Cost per meal paid by the Department of                                                                        1313

   Corrections for inmate meals taxable because

   Taxpayer is engaged in the business of

   preparing food for consumption.

 

                                                                 Issue                      53.00

 

   The definition of a retailer is not limited to those                                                              0449

   taxpayers with more than one customer.

   Transfer of tangible graphic designs is not                                                                      0515

   inconsequential in connection with services

   provided and is therefore taxable under

   Code now taxes retail sales beyond corporate                                                                0547

   limits where Taxpayer conducts substantial

   business activity within city limits.

   Retail sales to governmental entitles are subject                                                             0667

   Liability for privilege tax is on seller. Purchaser                                                               0667

   can refuse to pay it and seller can refuse to

   make sale.

   Complete replacement of faucets and other                                                                    0676

   assemblies taxable as contracting, not retail

   sales plus exempt service labor.

   Installation of parts such as o-rings, toilet                                                                       0676

   flappers, faucet stems, etc. qualify as

   consumable goods.

   Sale of paper products (Shamrock type) to                                                                     1028

   restaurants not taxable as retail sales.

   Retail sales of small animal prescription diets,                                                                1202

   specialized insecticides and medicated

   shampoos taxable.

   Charge of 10% of labor cost not considered sale                                                             1280

   of items used or consumed in servicing of

   vehicles.

 

                                                                 Issue                      54.00

 

   A sale takes place when the written contract is                                                              0210

   executed as opposed to when delivery is made.

   A sale is determined to be made as of the                                                                      0228

   contract execution date rather than the delivery

   date.

   Offsite costs were includable as sales income                                                                0241

   Gift or abandonment of fixtures does not                                                                        0315

   Transfer of property to related business held not                                                             0539

   to be a sale absent receipt of any consideration

   Sec 14-1.

   "Lay-a-Way" type sales, where transfer of title                                                                0568

   and possession is after payment, are analyzed

   under "sale" definition. Overrules CAP Nos. 210

   The Sale-leaseback was a taxable sale of the                                                                 1320

   property rather than a financing transaction.

   The Sale-leaseback was a taxable sale of the                                                                 1321

   property rather than a financing transaction.

                                                                 Issue                      54.10

                                                                                                                                     Ruli

   Issue                                                                                                                          Num

   Sale of gift certificates to restaurant who resells                                                              1093

 

                                                                 Issue                      55.00

 

   Where sale of equity results in no monies                                                                      0457

   transferred to Taxpayer but only increases

   capital in partnership, no taxable transaction

 

                                                                 Issue                      56.00

 

   Sales to be used for highway use are exempt                                                                 0404

   from city tax- does not apply to highways on

   Indian Reservations.

   Sales of gasoline by rental companies to its                                                                   0933

   customers are retail sales and exempt by Sec.

   14-465(j).

   Federal Fuel Excise Tax included in gross                                                                     1001

 

                                                                 Issue                      57.00

 

   Tax due where taxpayer is involved in taxable                                                                 0093

   activities.  Sale of repossessed cars is taxable.

   Taxpayer made sales of repossessed                                                                            0199

   automobiles at public auctions and thereby

   engaged in doing business.

 

                                                                 Issue                      59.00

 

   Upheld the sale of an automobile to an Indian                                                                 0119

   Taxpayer had not demonstrated that Indian                                                                    0147

   tribes meet criteria of Section 14-40(m) as being

   sales to U.S. govt. its departments or agencies.

 

                                                                 Issue                      59.50

 

   Six bills of sale offered by taxpayer to show sales                                                           0539

    were not to a related party are analyzed.

 

                                                                 Issue                      59.70

 

   Section 8 low income housing payments                                                                        0766

   constitute taxable gross income to the landlords

   receiving the assistance.

   Section 8 low income housing payments                                                                        0767

   constitute taxable gross income to the landlords

   receiving the assistance.

   Section 8 low income housing payments                                                                        0769

   constitute taxable gross income to the landlords

   receiving the assistance.

   Section 8 low income housing payments                                                                        0770

   constitute taxable gross income to the landlords

   receiving the assistance.

   Section 8 low income housing payments                                                                        0788

   constitute taxable gross income to the landlords

   receiving the assistance.

   Section 8 low income housing payments                                                                        0791

   constitute taxable gross income to the landlords

   receiving the assistance.

   Section 8 low income housing payments                                                                        0792

   constitute taxable gross income to the landlords

   receiving the assistance.

   Section 8 low income housing payments                                                                        0793

   constitute taxable gross income to the landlords

   receiving the assistance.

   Section 8 low income housing payments                                                                        0899

   constitute taxable gross income to the landlords

   receiving the assistance.

   Section 8 low income housing payments                                                                        0900

   constitute taxable gross income to the landlords

   receiving the assistance.

 

                                                                 Issue                      59.70

   Section 8 low income housing payments                                                                        0901

   constitute taxable gross income to the landlord

   receiving the assistance.

 

                                                                 Issue                      60.00

 

   Nontaxable service versus miscellaneous income                                                           0290

 

                                                                 Issue                      60.20

 

   Refundable security deposits are not taxable                                                                  0766

   gross income until they forfeit to the landlord.

   Refundable security deposits are not taxable                                                                  0767

   gross income until they forfeit to the landlord.

   Refundable security deposits are not taxable                                                                  0769

   gross income until they forfeit to the landlord.

   Refundable security deposits are not taxable                                                                  0770

   gross income until they forfeit to the landlord.

   Refundable security deposits are not taxable                                                                  0788

   gross income until they forfeit to the landlord.

   Refundable security deposits are not taxable                                                                  0791

   gross income until they forfeit to the landlord.

   Refundable security deposits are not taxable                                                                  0792

   gross income until forfeiture to the landlord.

   Refundable security deposits are not taxable                                                                  0793

   gross income until they forfeit to the landlord.

 

                                                                 Issue                      61.00

 

   The sales of service agreements are sales of                                                                  0242

   intangible personal property and therefore, not

   taxable.

 

                                                                 Issue                      62.00

 

   Commissions are derived from use of Taxpayer                                                               0159

   facilities and not labor, therefore constitute

   taxable rental income.

   Commissions received from pro for use of pro                                                                 0198

   shop are derived from renting use of real

   property within City therefore constitute taxable

   An analysis was made of what constitutes service                                                          0216

   There are no services rendered directly to the                                                                 0242

   purchaser that are incidental to the appliance

   purchase.

   Taxpayer met burden of proving assessment                                                                  0249

   paid. The assessment of income derived from

   labor performed of tune-ups of automobiles was

   Rental of equipment versus nontaxable services.                                                             0273

   Separately charged to clients and separately                                                                  0346

   Taxpayer in business of servicing toilets but                                                                   0512

   service income not separated from rental income

    so all income taxable per Code Sec 14-42, Reg.

   As Taxpayer failed to show that supplies should                                                             0532

   be excluded from tangible personal property

   transferred, cost of property was greater than

   Oxygen sales are exempt per Sec 14-42 as                                                                   0533

   inconsequential tangible personal property

   transferred incidentally to services rendered.

 

                                                                 Issue                      62.00

 

   Taxpayer failed to prove that its share of video                                                                0560

   game revenue was payment for services rather

   than licensing income.

   Income from rental of portable toilets is for both                                                              0660

   rental and service. To extent proven, portion of

   service income is not taxable.

   Dumping of asphalt is not a taxable activity.                                                                   0831

   Processing asphalt is an exempt service.                                                                       0831

   Renting of equipment to subscribers of financial                                                              0907

   information services considered rental and

   service business.

   Services were held to not be "Direct Customer                                                                0907

   Services." Therefore, Taxpayer not required to

   separate service charges from rental charges on

   Sales of optional insurance by vehicle leasing                                                                 0933

   All income taxable. Taxpayer failed to prove                                                                   1042

   service business independent from rental

   business; service income not separated from

   Allocation of revenue from maintenance                                                                          1092

   contracts based on cost to determine taxable

   and non-taxable portion allowed.

   Income from maintenance contract which                                                                       1092

   includes major repairs for elevators is taxable

   income from a construction activity.

 

                                                                 Issue                      62.00

 

   Service income taxable because Taxpayer failed                                                             1173

   to present documentation of service income

   amount included in construction activity income.

   When service business and income are separate                                                            1236

    from retail income, the service income is not

   subject to the tax.

   Rush-order charges are not direct customer                                                                   1295

   Rush-order charges are not separate from retail                                                              1295

   Erection and disassembly activity is not separate                                                           1317

   from TaxpayerP rental business activity.

 

                                                                 Issue                      62.50

 

   Taxpayer owns real property and has                                                                             0713

   improvements constructed. Taxpayer sold

   improved property within 24 months. Taxpayer

   taxed as speculative builder.

   Taxpayer's sale of "unimproved" land constitutes                                                            0798

   improved real property under 14-416, since

   power, water and streets constructed to property

   Code speculative builder provisions do not apply                                                             0821

   retroactively. Code only relies on antecedent

   facts.

   Code speculative builder provisions encompass                                                              0821

   sale portion of a sale-leaseback transaction.

   Code speculative builder provisions do not apply                                                             0824

   retroactively. Code only relies on antecedent

   facts.

   Code speculative builder provisions encompass                                                              0824

   sale portion of a sale-leaseback transaction.

   "By or through others" language of 14-100                                                                      0832

   [Owner-Builder] does not require an agency

   relationship.

   A taxpayer becomes an owner-builder by                                                                       0832

   constructing, or having constructed,

   improvements to real property. Signing a

   Code Sec. 14-100 [Owner-Builder] legislatively                                                               0832

   Intent to make profit or gain irrelevant to                                                                         0832

   speculative builder status. Tax liability results

   when speculative builder definition is met.

 

                                                                 Issue                      62.50

 

   Code speculative builder provisions do not apply                                                             0891

   retroactively. Code only relies on antecedent

   facts.

   Substantial completion of non-building                                                                           0891

   improvements on the real estate is taxable

   activity to speculative builder.

   Under Code Sec. 14-416, the sale of land with                                                                0891

   grading, installation of utilities, paving is

   improved land and subject to speculative builder

   A taxpayer can be an owner-builder and                                                                         0891

   Application of Code Sec. 14-417 owner builder                                                                0891

   tax is retroactive under case facts.

   Code Sec. 14-100 and 14-416 are not                                                                            0891

   Taxpayer taxable as speculative builder.                                                                        0928

   Property sold within 24 months after Certificate of

    Occupancy issued.

   Taxpayer taxed as speculative builder because                                                               0944

   hotel was sold within 24 months after Certificate

   of Occupancy issued by City.

   Sales of parcels with no bldgs. constructed                                                                    1104

   considered taxable "improved real property"

   because water, power & streets constructed to

   Taxpayer taxable as speculative builder.                                                                        1104

   Property sold within 24 months after Certificate of

    Occupancy issued.

 

                                                                 Issue                      62.50

 

   Taxpayer taxed as speculative builder because                                                               1127

   he was "owner" on building permit and the house

    was sold within two years of substantial

   Taxpayer did not contribute property to joint                                                                   1150

   venture, hence transaction is a speculative

   builder sale.

   Sale-leaseback transaction is taxable sale under                                                            1320

   speculative builder classification.

   Sale-leaseback transaction is taxable sale under                                                            1321

   speculative builder classification.

 

                                                                 Issue                      62.70

 

   A communications channel connects the outside                                                            0895

   world to the inside - internal channels are not

   "communication channels.".

   Satellite television service held taxable.                                                                          0895

   Transmission of Muzak signal piggybacked to                                                                1022

   Taxpayer's FM signal is telecommunications

   service.

   Taxpayer proved that telecommunications                                                                      1042

   income was small portion of equipment rental

   and service contract.

   Taxpayer failed to prove that the ratio of                                                                         1063

   intrastate calls to interstate long distance calls

   should be different from Tax Collector's

   Taxpayer activity of providing telephone,                                                                         1069

   facsimile and telex services to its hotel customers

    subject to the telecommunications tax.

   Income from alarm monitoring services subject to                                                           1375

 

                                                                 Issue                      63.00

 

   Tax is to be assessed only on that portion of the                                                            0419

   fees that are not passed on to the telephone

   company.

   Taxpayer who provides two way radio repeater                                                                0465

   service is not a common carrier and is not

   subject to the tax on telephone service providers.

   Hotel is not in business of transmitting messages                                                           0558

   by telephone within Sec 14-2 (c)(2).

   Taxpayer's business of reselling long distance                                                                0838

   time was not taxable as a business of

   transmitting long distance calls.

   U.S. West customer access line charge is exempt                                                         0839

    from taxation under Code Sec. 14-470(c).

   U.S. West customer access line charge is gross                                                            0839

   income under Code Sec. 17-470(a).

   U.S. West customer access line charge is exempt                                                         0840

    from taxation under Code Sec. 14-470(c).

   U.S. West customer access line charge is gross                                                            0840

   income under Code Sec. 14-470(a).

   U.S. West customer access line charge is exempt                                                         0841

    from taxation under Code Sec. 14-470(c).

   U.S. West customer access line charge is gross                                                            0841

   income under Code Sec. 14-470(a).

 

                                                                 Issue                      63.00

 

   U.S. West customer access line charge is exempt                                                         0842

    from taxation under Code Sec. 14-470(c).

   U.S. West customer access line charge is gross                                                            0842

   income under Code Sec. 14-470(a).

   U.S. West customer access line charge is exempt                                                         0843

    from taxation under Code Sec. 14-470(c).

   U.S. West customer access line charge is gross                                                            0843

   income under code sec. 14-470(a).

   U.S. West customer access line charge is exempt                                                         0844

    from taxation under Code Sec. 14-470(c).

   U.S. West customer access line charge is gross                                                            0844

   income under Code Sec. 14-470(a).

   U.S. West customer access line charge is exempt                                                         0845

    from taxation under Code Sec. 14-470(c).

   U.S. West customer access line charge is gross                                                            0845

   income under Code Sec. 14-470(a).

   U.S. West customer access line charge is gross                                                            0846

   income under Code Sec. 14-470(a).

   U.S. West customer access line charge is exempt                                                         0846

    from taxation under Code Sec. 14-470(c).

 

                                                                 Issue                      63.00

 

   U.S. West customer access line charge is exempt                                                         0847

    from taxation under Code Sec. 14-470(c).

   U.S. West customer access line charge is gross                                                            0847

   income under Code Sec. 14-470(a).

   U.S. West customer access line charge is exempt                                                         0848

    from taxation under Code Sec. 14-470(c).

   U.S. West customer access line charge is gross                                                            0848

   income under Code Sec. 14-470(a).

   U.S. West customer access line charge is exempt                                                         0849

    from taxation under Code Sec. 14-470(c).

   U.S. West customer access line charge is gross                                                            0849

   income under Code Sec. 14-470(a).

   Taxpayer failed to prove that the ratio of                                                                         1063

   intrastate calls to interstate long distance calls

   should be different from Tax Collector's

 

                                                                 Issue                      64.00

 

   Putting up temporary poles.                                                                                          0273

 

                                                                 Issue                      65.00

 

   Taxation of trading stamp companies not clearly                                                             0140

   Taxpayer submitted documentation showing                                                                   0487

   "stamp books" were stamps, the income from

   which is not taxable pursuant Sec 14-2.4.

 

                                                                 Issue                      65.10

 

   Federal Act prohibits privilege tax upon carriage                                                              0533

   of persons in air commerce including intrastate

   navigation.

 

                                                                 Issue                      66.00

 

   Income designated as being from "valet" services                                                            0188

 

                                                                 Issue                      66.50

 

   Gross income to taxpayer versus conduct to third                                                           0409

   Taxpayer did not act as agent for horse owners                                                              0519

   because payment of winning purses is a

   business obligation of Taxpayer.

   Taxpayer did not act as agent for horse owners                                                              0878

   because payment of purses is provided by

   statute with no evidence of agency relationship.

   "Breakage" which is to be allocated to purses                                                                1200

   under A.R.S. Section 5-111.01(B)(2) or (3) not

   taxable.

   The total amount wagered, without deduction for                                                             1200

   the statutorily mandated purses constitutes

   taxable gross receipts of Taxpayer.

 

                                                                 Issue                      67.00

 

   Bad debts.                                                                                                                  0029

   Accrual basis taxpayers are to be allowed a                                                                   0104

   deduction for verified bad debt expenses.

   Taxpayer not entitled to bad debt deduction                                                                    0118

   because he has not met burden of proof in

   establishing same on basis of documentation

   Taxpayer is not entitled to a bad debts deduction                                                            0130

    for nonpayments by newspaper carriers.

   Taxpayer was entitled to a bad debts deduction                                                              0130

   for nonpayments by subscribers.

   City's disallowance of bad debt deduction upheld                                                            0141

    because Taxpayer had merely offered to

   substantiate deduction by estimates.

   Disallowed.                                                                                                                  0295

   No documentation to support.                                                                                       0385

   Accounts not yet charged off during audit period                                                             0547

   for Taxpayer reporting on an accrual basis are

   properly included in tax base.

   It is not appropriate to include non-taxed labor                                                                0582

   charges in the bad debt calculation to be

   subtracted from taxed sales.

 

                                                                 Issue                      67.00

 

   Specific charge of method is not a cash basis                                                                0597

   Specific charge-off method is not a cash basis                                                               0597

   No deduction for allowance for bad debts.                                                                       0597

   Excess tax assessment abated since Taxpayer                                                             0864

   reporting on an accrual basis is entitled to

   deductions for bad debts charged off & other

   No adjustment allowed. Taxpayer's information                                                               0943

   insufficient to identify whether bad debts were

   amounts included as income in sample months.

   Taxpayer failed to provide sufficient evidence                                                                  0950

   that the bad debt amount has previously been

   reported as taxable lease revenue.

   Deduction allowed for cancelled sales.                                                                           1032

   Recovery of amounts previously written off from                                                               1293

   a lessee is a taxable transaction.

 

                                                                 Issue                      67.50

 

   It is the taxpayer's burden to establish availability                                                           0719

    of any exemption from taxable income.

   It is the taxpayer's burden to establish availability                                                           0720

    of any exemption from taxable income.

   Taxpayer's books & records did not support and                                                             0822

   it did not otherwise prove its argued for tax

   treatment.

   Exempt sales disallowed due to lack of                                                                          0931

   reasonable evidence that cars are purchased for

    resale.

   Reason for exemption on each separate sale not                                                            0938

   Taxpayer is responsible for maintaining                                                                          0943

   adequate documentation to prove sale was

   exempt.

   Taxpayer's testimony regarding the nature of its                                                              0959

   customer's business and use of products

   purchased by these customers not considered

   Verbal claim of "sale for resale" and Customer's                                                             0960

   business license number insufficient to support

   an exemption.

   Taxpayer may only take exemption from tax if                                                                0961

   documentation sufficient to validate the claim is

   obtained from customer.

   Subsequent documentation generally less                                                                      0962

   reliable than evidence obtained at time of

   transaction so it must clearly establish the

 

                                                                 Issue                      67.50

 

   Subsequent documentation generally less                                                                      0963

   reliable than evidence obtained at time of

   transaction so it must clearly establish the

   Taxpayer did not provide sufficient information to                                                             0969

    allocate maintenance contract revenues

   between construction contracting and retail

   Taxpayer failed to prove its entitlement to the                                                                 0973

   exemption from construction contracting.

   Taxpayer failed to provide substantial and                                                                       1004

   reliable evidence and documentation to support

   claimed exemptions and deductions.

   Taxpayer did not provide evidence to prove that                                                               1063

   it is entitled to any exemption for purchases by a

   construction contractor.

   Taxpayer not entitled to Use Tax exemption                                                                   1063

   because charges for delivery, installation or

   other customer services were not separately

   Taxpayer's bare assertion that a transaction is                                                               1064

   exempt does not carry Taxpayer's burden of

   proving exemption.

   Taxpayer's bare allegation that an item was                                                                    1090

   resold does not carry burden of establishing

   exemption.

   Taxpayer's bare allegation that an item was                                                                    1090

   resold does not overcome documentary

   evidence which indicates otherwise.

   Statements by Taxpayer's customers and                                                                      1139

   additional documentation was not considered

   substantial, reliable and conclusive evidence.

 

                                                                 Issue                      67.50

 

   Taxpayer's documentation was insufficient to                                                                  1144

   prove that the transactions were not subject to

   Use Tax.

   Tax upheld - non-taxable portion of fee not                                                                      1278

   separately charged and Taxpayer provided no

   reasonable basis for allocation.

   State exemption certificate and qualifying health                                                             1280

   care exemption letter provided Taxpayer with

   reasonable cause to believe transaction is

   Information contained in an incomplete, untimely                                                            1369

   or otherwise inappropriate exemption certificate

   can be used as evidence to establish an

 

                                                                 Issue                      68.00

 

   Telephone company charges constituted                                                                        0221

   taxpayer's business expenses and since they

   were reimbursed by customers they constituted

   Expenses or materials used in business not                                                                   1280

   deductible from gross income, therefore, 10% of

   labor charge is gross income.

 

                                                                 Issue                      69.00

 

   Allowed where prior to Ordinance G-1646.                                                                      0064

   Allowed because law is not clear.                                                                                  0096

   Taxpayer failed burden of proof to establish he                                                                0127

   was entitled to exclude from taxation service

   income associated with sale of airplane.

   Sales of model furniture relating directly to                                                                     0241

   home-building activity did not constitute casual

   business activity.

   Casual sale.                                                                                                                0286

   Sale or lease of real property.                                                                                        0296

   Taxpayer in manufacturing business sold aircraft.                                                           0305

    Ruled not casual overruled by Western Dynex. 

   Held that business could have casual sales in

   another activity.

   Not constitute business of furnishing natural gas                                                             0316

   as utility- Does constitute sale of tangible

   personal property.

   Business.                                                                                                                    0331

   Sales of used vehicles and equipment.                                                                           0379

 

                                                                 Issue                      69.00

 

   Prior to code change in 1976. one commercial                                                                0392

   Taxpayer not in business of selling airplanes,                                                                 0398

   Lease of equipment by a business was casual                                                               0415

   where the Taxpayer is not in that particular

   business and the transaction was isolated.

   Sale of over 50 vehicles during the audit period                                                               0444

   Sale of automobile by Mining Supply Co. is a                                                                 0471

   casual activity and is not subject to tax.

   An ongoing licensing agreement whereby                                                                       0474

   taxpayer receives a portion of vending machine

   receipts is not a casual activity.

   The leasing of two commercial properties is not a                                                           0474

    casual activity therefore the gross receipts

   therefrom are taxable.

   Isolated sale of composting machine by a                                                                      0519

   non-retailer is a non-taxable casual activity.

   Business subject to tax by city can have casual                                                             0662

   Sales of equipment by contractor representing at                                                            0712

    most 0.4% of total revenue are casual activity.

 

                                                                 Issue                      69.00

 

   Taxpayer's leasing activity, which results from                                                                0730

   one lease, is not a casual activity. The lease is

   the taxpayer's full time and only leasing activity.

   Taxpayer's leasing activity, which results from                                                                0731

   one lease, is not a casual activity. The lease is

   the taxpayer's full time and only leasing activity.

   Taxpayer's leasing activity, which results from                                                                0732

   one lease, is not a casual activity. The lease is

   the taxpayer's full time and only leasing activity.

   Taxpayer's leasing activity, which results from                                                                0733

   one lease, is not a casual activity. The lease is

   the taxpayer's full time and only leasing activity.

   Taxpayer's leasing activity, which results from                                                                0734

   one lease, is not a casual activity. The lease is

   the taxpayer's full time and only leasing activity.

   Sale exempt as casual for an auctioneer if such                                                             0755

   sale would be exempt as casual for principal.

   A family corporation does not qualify for the one                                                             0822

   unit real property rental exemption under Reg.

   14-445.1(b)(6).

   Income from a speculative builder sale is                                                                        0832

   incurred after rental activity has ceased. It does

   not count as income under Code Sec.

   Partnership of first cousins is not from same                                                                  0852

   immediate family under Reg. 14-445.1(b)(6).

   One unit rental not tax exempt under 14-445(g).

   Under Code Sec. 14-2(a)(9), partnership's single                                                             0852

    rental unit more resembled an investment and

   had another source of income. Rental income

 

                                                                 Issue                      69.00

 

   Partner's individual income may be considered                                                               1237

   for casual commercial lease purposes.

   Prior to January 1977, a partnership leasing one                                                             1261

   unit of commercial property was not engaged in a

    taxable business activity.

   Taxpayer not subject to casual commercial rental                                                           1298

    exemption because it had residential rental

   properties and two commercial properties in the

 

                                                                 Issue                      70.00

 

   Good faith reliance.                                                                                                      0261

   Exemption certificate, Good faith.                                                                                  0268

   Technological impossibility is not a defense to a                                                             0597

   Technological impossibility of calculating tax is                                                              0597

   not a defense to an assessment.

   Name of business can indicate business activity.                                                            0831

   Taxpayer has option to prove exemption through                                                             0836

   Reg. 14-360.2 or through Reg. 14-350.1 and

   360.1.

   Certificates which do not satisfy Reg. 14-360.2                                                               1001

   may satisfy Reg. 14-350(d)(1) or (2).

   Resale Certificates obtained after the sale must                                                              1083

   meet the "reasonably prudent businessman" test

   explained by Reg. 14-360.1

   Liability for payment of tax shifted from vendor to                                                            1213

   customer whose improper claim for exemption

   deprived the  revenue.

   Liability for payment of tax shifted from vendor to                                                            1214

   customer whose improper claim for exemption

   deprived the  revenue.

 

                                                                 Issue                      71.00

 

   Direct Labor Deduction vs. Overhead.                                                                             0025

   Labor.                                                                                                                         0032

   Subcontractor, direct labor.                                                                                           0035

   Direct labor requires separation on books and                                                                 0040

   Direct labor disallowed where not direct.                                                                         0057

   Direct labor does not include supervision, clean                                                              0070

   Clean up costs were found to be a sufficient                                                                   0076

   alteration of property to be deductible.

   Gross proceeds of sales are taxed without any                                                               0104

   deduction for cost of property sold or expenses

   of any kind.

   Discussion of disallowance of certain direct labor                                                            0112

   and subcontractor, deductions and unequal

   treatment of allowable fringe benefit deductions.

   Taxpayer entitled to deduction for cost of direct                                                              0211

   labor in construction, as well as amounts paid for

    social security, workers comp and other fringes.

 

                                                                 Issue                      71.00

 

   The 35% Standard Deduction for contracting                                                                  0219

   income applies to gross income, receipts or

   proceeds exclusive of City or State Privilege

   Direct labor deduction- subcontracting                                                                           0318

   Computation of 35% in lieu of labor deduction.                                                                0375

   Cost of building materials sold by Taxpayer to                                                                0563

   project owner are not included in Taxpayer gross

    income for purpose of calculating 35%

   in-lieu-of-labor deduction.

   Taxpayer's electrical work improved real                                                                         0856

   property, therefore, electrical work was

   contracting activity.

 

                                                                 Issue                      72.00

 

   Deduction for Real Property.                                                                                         0012

   Cost of land is not deductible from construction                                                              0466

   Sale price of land not included in contracting                                                                  0605

   receipts because no City Code provision

   requiring inclusion or denying deduction.

   Evidence sufficient to support exclusion of land                                                               0650

   value where owners taxed as contractors on sale

    of project.

 

                                                                 Issue                      73.00

 

   Off-site Improvement Deductions.                                                                                  0006

   Materials incorporated into a structure/project.                                                                0321

 

                                                                 Issue                      73.50

 

   Where audit sample includes a series of                                                                        0547

   invoices, credit memos relating to invoice in

   series and issued during audit period reduce

 

                                                                 Issue                      74.00

 

   Taxpayer entitled to credit for unpaid price of                                                                  0129

   mobile homes sold under a conditional sales

   contract upon which purchaser has defaulted.

 

                                                                 Issue                      75.00

 

   Security deposit, separately maintained.                                                                        0287

   Income, when more deliveries than returns.                                                                    0404

 

                                                                 Issue                      76.00

 

   Diesel fuel constitutes other "agricultural                                                                        0173

   chemicals or supplies" sales of which are exempt

   under Section 14-40(i).

   Diesel fuel purchases exempt from City tax when                                                           1001

   subject to State Use Fuel Tax.

   Diesel fuel bulk sales are not exempt if a Use                                                                 1120

   Fuel Tax license number is not obtained or the

   fuel is to be used off-highway.

 

                                                                 Issue                      77.00

 

   Deduction.                                                                                                                   0014

   Subcontracting, carpet, permanent.                                                                               0031

   Subcontractor not licensed.                                                                                          0046

   Labor not allowed where cost and selling price                                                                0047

   Sales for resale/reasonably prudent                                                                               0347

   businessman- Sales for purpose of resale by

   purchaser in the form supplied by job printer.

   Sales of prosthetic devices.                                                                                          0355

   Timesharing and batch service, service versus                                                                0374

   As no Code exemption exists for software sales,                                                            0530

   income from such sales is taxable regardless of

   confusion created by state exemption.

   Exempt sales disallowed due to lack of                                                                          0931

   reasonable evidence that cars are purchased for

    resale.

   Exemption disallowed - no substantial and                                                                     1023

   reliable evidence to support orders were from

   out-of-state.

 

                                                                 Issue                      77.00

 

   Statements by Taxpayer's customers and                                                                      1139

   additional documentation was not considered

   substantial, reliable and conclusive evidence.

   Sale for resale deductions not allowed in the                                                                  1334

   absence of objective evidence that the printed

   material was sold in the ordinary course of

 

                                                                 Issue                      78.00

 

   Taxpayer failed to provide documentation.                                                                      0366

   Discounts involve a question of scope of gross                                                                0867

   income, not an exclusion from it. However,

   requirements of 14-240(a) (1) and (2) must be

 

                                                                 Issue                      79.00

 

   Imposition of the use tax on taxpayer constituted                                                            0140

   Personal prop. included in sale of real prop. must                                                           0453

    be fabricated or incorporated into structure to

   deduct tax previously paid, from tax due on sale.

   A use tax on the paper used for tickets and on                                                               0470

   the right to enter based on the presentation of

   the ticket are separate and independent.

   A tax on a license agreement and a tax on the                                                               0474

   revenue from the vending machine receipts

   underlying the agreements are separate and

   Imposing tax on printing of advertising                                                                            0570

   supplements and advertising revenues of

   newspaper does not result in double taxation.

   Contractor not harmed if owner subsequently                                                                  0712

   taxed for same contracting activity. Contractor

   always liable for tax. Owner entitled to credits.

   Illegal double taxation results when property is                                                               0717

   taxed twice for the same purpose for the same

   period by the same authority.

   It is not double taxation to tax burglar alarm                                                                   0740

   company when telephone lines monitored by

   company are also taxed.

   Illegal double taxation results when property is                                                               0766

   taxed twice for the same purpose for the same

   period by the same authority.

   Illegal double taxation results when property is                                                               0767

   taxed twice for the same purpose for the same

   period by the same authority.

 

                                                                 Issue                      79.00

 

   Illegal double taxation results when property is                                                               0769

   taxed twice for the same purpose for the same

   period by the same authority.

   Illegal double taxation results when property is                                                               0770

   taxed twice for the same purpose for the same

   period by the same authority.

   Entity has no standing to protest propriety of                                                                  0825

   allegedly improper taxes passed on to it by

   person liable for tax.

   Entity has no standing to protest propriety of                                                                  0826

   allegedly improper taxes passed on to it by

   person liable for tax.

   Imposition of use tax is not "double taxation".                                                                 0836

   Taxation of income from different taxable                                                                        0869

   Tax paid to printers on printed materials and                                                                   0902

   imposition of tax upon Taxpayer's charges to

   customers do not constitute double taxation.

   Payment of tax on purchases and resale of items                                                           0905

    at retail is not double taxation if Taxpayer failed

   to take act necessary to qualify for exemption.

   Imposition of sales tax on retail sales and the                                                                 1014

   imposition of sales tax on construction

   contracting revenue is not double taxation.

   Imposition of tax on two separate transactions is                                                            1143

 

 

 

                                                                 Issue                      79.00

 

   Imposition of Privilege Tax on retail sales and                                                                 1293

   imposition of Privilege Tax on lease income is not

    double taxation.

 

                                                                 Issue                      80.00

 

   Taxpayer entitled to deduction for sales of                                                                      0231

   property used directly in production or

   transmission of electrical power.

   Sales of tangible personal property used directly                                                             0321

   in the transmission of electrical power.

   Generators used to produce electricity for                                                                      0447

   refrigeration units are exempt from taxation as

   electrical generating equipment.

   Motor vehicles are specifically excluded from                                                                  0553

   exempt sales to electrical generating entities.

   Control room simulator does not qualify for the                                                                1340

   Pollution control equipment does not qualify for                                                               1340

   Protective relays qualify for the exemption.                                                                     1340

 

                                                                 Issue                      80.50

 

   Certificates under Reg. 14-360.2 must be                                                                       0836

   obtained at the time of the transaction.

   Insufficient exemption certificates.                                                                                 0879

   Certificates rejected because Taxpayer letter                                                                  0955

   after audit requested certain specific reasons be

   marked on certificates.

   Certificates which do not satisfy Reg. 14-360.2                                                               1001

   may satisfy Reg. 14-350(d)(1) or (2).

   Certificates which do not satisfy Reg. 14-360.2                                                               1083

   requirements may satisfy Reg. 14-350(d)(1) or

   (2) requirements.

   Exemption Certificates sent back to Taxpayer by                                                            1102

   customers show customers not exempt from tax.

   Statements by Taxpayer's customers and                                                                      1139

   additional documentation was not considered

   substantial, reliable and conclusive evidence.

 

                                                                 Issue                      81.00

 

   Sales to organizations operated by the Blind                                                                  0190

   under the Arizona Department of Economic

   Security are not taxable.

   Sales of magazine to exempt organization                                                                     0476

   deemed retail sales even though they are resale

   sales.

   Sale of food to YWCA is exempt because the                                                                0487

   more specific food exemption supersedes the

   more general taxing provision of 14-44.2(b).

   Retail Sales to governmental entitles are subject                                                            0667

   Sales to exempt organizations are taxable.                                                                    0676

   City can rely on license list published by AZ Dept.                                                          0897

    of Health in allowing or denying exemptions for

   sales to health orgs.

   IRS non-profit exemption letter does not establish                                                           1030

   A Federal Credit Union organized under the                                                                    1381

   Federal Credit Union Act, 12 U.S.C. 1752 et seq.

   is exempt from all local and state tax except

                                                                 Issue                      81.10

 

   Less than $100/unit.                                                                                                     0280

   Expendable items less than $100/unit cost.                                                                   0291

   Unit cost of less than $100.                                                                                          0334

   Definition of expendable materials upheld as any                                                            0472

   item less than $100 when applied to replacement

    parts used in telephone central switching office.

   Income producing capital equipment are taxable                                                             0857

   expendable items of cost < $250 and vendor has

    no exemption certificate.

   Unit cost test should be applied to the cost of                                                                0934

   one pipe instead of price per foot of pipe.

   Drill bits, separation plates and spare parts                                                                    1071

   costing under $250.00 are expendables.

   Film used in job printing operations is an                                                                        1090

   The aggregate of the parts which comprise an                                                                1196

   aircraft overhaul or repair is the economic unit

   sold to the customer.

   Unit cost test is applied to a spool of fiber optic                                                              1340

 

                                                                 Issue                      82.00

 

   Factoring of tax.                                                                                                           0274

   Sales tax.                                                                                                                   0295

   Cash register will not separate.                                                                                     0300

   Factoring of sales tax is allowed only in those                                                                0443